Walmart, the world’s largest retailer, announced significant changes to its diversity, equity, and inclusion (DEI) initiatives, reflecting a growing trend among corporations to retreat from such programs under conservative scrutiny.
The Bentonville, Arkansas-based company confirmed it will no longer factor race or gender into supplier contracts and will stop collecting demographic data when evaluating financing eligibility.
Walmart has also decided to halt racial equity training for employees, withdraw participation from Human Rights Campaign rankings, and review funding for Pride and similar events.
These changes position Walmart as the most prominent US company to roll back DEI efforts, a move made public after pressure from conservative activist Robby Starbuck.
Robby Starbuck’s role in forcing Walmart’s hand
Starbuck, who has mobilized boycotts of companies over their DEI and LGBTQ+ commitments, claimed credit for the shift.
In response to Starbuck’s campaign, Walmart stated that the changes stemmed from an internal review of its DEI policies, adding that the company’s focus would shift to fostering “a sense of belonging” for its employees, customers, and partners.
He threatened to organize a boycott involving his 700,000 followers on X if Walmart did not step away from supporting LGBTQ+ causes and DEI programs.
Starbuck described Walmart’s reversal as “the biggest win yet for our movement to end wokeness in corporate America.”
Starbuck’s campaign against DEI has earlier influenced companies such as Stanley Black & Decker and Brown-Forman, the parent company of Jack Daniel’s whiskey, to modify or eliminate diversity programs.
Despite the external pressure, Walmart insists that its decision was part of an ongoing internal reassessment.
A growing trend of companies rethinking their DEI policies
Walmart is not alone in rethinking DEI commitments.
Other major companies, including Boeing, Lowe’s, Ford, Caterpillar, John Deere, and Molson Coors have made similar adjustments in response to a growing conservative backlash.
Following the racial reckoning sparked by George Floyd’s murder in 2020, many companies pledged to diversify their workforces and support social justice causes.
Then, in 2023, a Supreme Court decision banned affirmative action in college admissions, while also raising questions about the legality of corporate diversity programs, prompting many organisations to quietly scale back their initiatives.
Backlash from conservative groups and anti-DEI activists is adding to the pressure, leading to significant reversals.
A Walmart spokesperson stated that the retailer had been reviewing its policies and practices following the Supreme Court’s decision, with the changes announced on Monday already in progress for several months.
Nevertheless, David Larcker, a professor at Stanford Graduate School of Business, highlighted the potential ripple effect of Walmart’s decision.
“When you see a company as influential as Walmart making this kind of change, others are likely to follow,” he told Bloomberg.
While a majority of Americans continue to support diversity efforts, conservative pressure has intensified, particularly with the resurgence of former President Donald Trump.
Tesla chief Elon Musk reacted to the development on X, saying, “The tide has turned”.
However, the impact on talent acquisition and customer loyalty remains uncertain.
A shift to “belonging” amid demographic realities
Walmart emphasized that it would replace the term “DEI” with “belonging,” focusing on creating a respectful and supportive work environment.
The company noted that 51.5% of its 1.6 million US employees identify as people of colour, and 51.9% are women.
These figures reflect the company’s longstanding efforts to build an inclusive workforce.
In its most recent annual report, Walmart described retail as “a powerful engine for inclusive economic opportunity,” reaffirming its commitment to advancing opportunity across its operations and supply chains.
However, the company also acknowledged the growing divide among its stakeholders.
Repercussions of Walmart’s decision
Walmart’s reversal may have far-reaching consequences.
On one hand, the move could appeal to conservative customers and reduce the risk of political boycotts.
On the other hand, it might alienate pro-diversity customers and employees who value the company’s previous commitments.
Polling data from Morning Consult shows that as recently as July, 57% of Americans supported diversity recruitment initiatives.
Whether Walmart’s pivot will affect its reputation or bottom line remains to be seen.
With more than 5,000 stores in the US and $532 billion in domestic revenue last year, Walmart’s decisions could set a precedent for other businesses navigating the polarising landscape of DEI policies.
As debates over corporate responsibility continue, Walmart’s recalibration highlights the delicate balance companies must strike between legal compliance, stakeholder expectations, and social values.
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